2016-12-06

NPM No. 108-2016

Requesting Entity: Municipality of Trinidad

Issues Concern: Applicability of RA 9184 in the River Rehabilitation Project with "Zero" ABC

 

Details

Whether or not Republic Act No. (RA) 9184 is applicable in the river rehabilitation project in your municipality which will entail no cost on the part of the municipality

 

[I]f an acquisition does not involve expenditure of funds in relation to an identified appropriation, RA 9184 and its revised Implementing Rules and Regulations (IRR) do not apply. In line with this, Section 4.4 of the revised IRR states that it shall not apply to activities involving public-private sector infrastructure or development projects and other procurement covered by RA 6957, as amended by RA 7718, except those portions financed by the government.

 

In case of projects where the government entity partners with the private sector entity, where the latter shoulders the cost or where the former is set to earn or profit rather than spend public funds, commonly termed as Public-Private Partnership (PPP), it is advisable to look into the applicability of the BOT Law.

 

Also, Section 35 of the 1991 Local Government Code (LGC) provides that local government units (LGUs) may enter into joint ventures and such other cooperative arrangements with the private sector to engage in the delivery of certain basic services, capability-building and livelihood projects, and to develop local enterprises designed to improve productivity and income, diversify agriculture, spur rural industrialization, promote ecological balance, and enhance the economic and social well-being of the people. Thus, it is recommended for the LGU to look into the applicability of the relevant provisions of the LGC in case it enters into a joint venture with the project proponent.